Two Step Software to Unveil Radically New FAS 123R Valuation Solution At NASPP Conference

Needham, MA - 4 October 2006

Latest release of Corporate Focus will incorporate option expensing – to become the industry’s only fully integrated stock plan administration and corporate governance system

Two Step Software, Inc., a leader in corporate governance and stock plan administration solutions, will be introducing the industry’s first fully integrated stock plan administration and corporate governance system, including option expensing to meet FAS 123R valuation regulations, at the National Association of Stock Plan Professionals’ (NASPP) 14th Annual Conference. FAS 123R rules require financial institutions to recognize in their income statement the grant-date fair value of stock options and other equity-based compensation issued to employees. The new Corporate Focus release will now be able to calculate that valuation acco! rding t o FAS 123R guidelines.

“According to FAS 123R, effective for fiscal years starting January 2006, most companies that have stock options must include the ‘fair value’ of those stock options in their income statements as an expense item. It is extremely challenging to calculate the ‘fair value’ of, for example, 500 stock options given out to 50 employees that vest over 5 years. The latest release of Corporate Focus software will be updated with an option expensing feature that will provide companies with that calculation under the new FAS 123R rules,” said Two Step President and Founder, Gary D. Levine. “This new release is aimed at CFOs who need to report their financial statements to investors or stockholders in accordance with Gener ally Accepted Accounting Principles.

“Recent legal battles over stock option backdating have brought attention to the care that is required for option administration as it relates to new tax and accounting rules. This only adds to the concerns over good corporate governance principles that led to the creation of Sarbanes-Oxley, in wake of the Enron scandal. Our software, Corporate Focus, is the only solution that brings together under one roof complex stock option tracking and detailed tracking of corporate governance information. All other programs do only one of these. Corporate Focus is the industry’s only fully integrated stock plan administration and corporate governance system,” Levine concluded.

Two Step Software simplifies corporate governance and stock plan administration for venture backed, pre-IPO and small cap public companies so that all their critical information and finalized documents are in one extremely easy to use software application. Unlike other products that only focus on one aspect of corporate governance, such as tracking numbers for a stock option plan, Two Step’s Corporate Focus brings all critical detail and legal documents together - helping companies ensure proper records management so that they are both in compliance and ready for the next equity or liquidity event.

With Corporate Focus software, stock plan professionals can easily view and manage complex capitalization information for their company or law firm clients from a single screen. A Capitalization Dashboard provides a comprehensive snapshot of the total ownership picture where you can view capitalization tables, pie charts, and reports or drill through to more detailed lists of stock and option information and related documents. In addition to ownership information, with Corporate Focus, all of the related entity and minute book information and finalized documents are instantly available, meaning there is no need to have multiple systems that often duplicate information.

Corporate Focus helps companies and law firms practice good corporate governance by helping to improve productivity, make better decisions, reduce risk, and collaborate more easily by offering the only fully integrated system for immediate access to corporate governance records, stock and option transactions and online minute books and contracts.

The newest version of Corporate Focus, containing support for FAS 123R valuation, will be available November 30, 2006.

As a premier event for stock plan professionals, the NASPP conference brings together top consultants and attorneys, practicing accountants, experienced administrators, and other industry luminaries to deliver fresh perspectives and cutting-edge guidance on the latest issues in executive and stock compensation. This year’s conference is to be held in Las Vegas from October 10-13, 2006.

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